Sorry, you were wrong when you say a split means nothing.... You obviously are interpreting the commentts in an absolute value sense rather than an inherent value. In that aspect I would agree, the 'free' comment was simple....I do question YOUR 'amatuer' status when you do not address 'cost of odd lots', 'liquidity', and 'shorting/liquidity issues'.... Rather than retype what I have said before about the 'benefits'..here is an excerpt..(find it at any finacial info website)
Companies split their stock to make the price more affordable to more investors. At a lower price, investors can buy even lots of the stock and avoid the high commissions attached to odd lot purchases. As a larger number of investors buy the stock, demand increases and thus a run-up in the stock price usually occurs. Also, stock splits create liquidity as existing shareholders find it easier to sell the stock when the price is affordable to others. The psychological effect the word "split" has on investors is rather strong. Some investors may automatically associate the word "split" with a lower price and a "good buying opportunity." There does seem to be a marketing hype to funds announcing a split. It�s possible that fund companies are trying to capitalize on investors� preconditioned favorable reaction to stock splits.
Company Benefits: a company will split its stock in order to make the price of their stock more attractive (affordable) to investors by, in effect, dropping the price of the stock. A prospective purchaser of XYZ Company can now pick up a share of stock for $50.00 post-split. The potential is for more investors to begin buying the cheaper stock, creating activity and momentum for the company. There is a psychological aspect to lowering the price of a share in a company through a split, especially one that is popular or in a popular industry. Even though the actual value of a share is halved through a split, the impression to buyers is that they can now get a share of XYZ for half the price. Depending on the company and its industry, a share�s price can begin to rise right after a split, and in many cases can, over time, go back to where it was pre-split. Investor Benefits: shareholders of XYZ Company now have twice the shares they did before. Assuming the cheaper price entices new investors to buy, the activity in the stock will naturally cause the price to begin to rise. In the long run, as XYZ Company does well and the value of XYZ stock increases, then having more post split shares in your portfolio will have a compounding effect on your entire position in XYZ Company.
If you want to banter about this, rather than fill up the AMRI baord..... My email is NVR2LATE4@yahoo.com